Brent price falls as forecasts rise, risk of $140
6.9 Markets Brent fell below $110 after diplomatic news. Goldman Sachs raised its forecast to $105 and warns of $140 if supply issues worsen. Kotak raises to $100. Supply risks persist.
Brent crude prices dropped below $110 following diplomatic developments, especially talks between Iran and the US, which contributed to the decline. In response to increased risks of supply disruptions, Goldman Sachs raised its December Brent forecast to $105 per barrel from $90, and warned prices could surge to $140 if Persian Gulf supplies are significantly reduced or if new attacks on infrastructure occur. Looking ahead, Goldman Sachs expects an average Brent price of $88 per barrel in 2027. Meanwhile, ANZ and UBS have set their targets at $105 and $110, respectively. Kotak raised its short-term forecast to $100 per barrel but maintains a $75 target for 2028 and the long term. The market remains volatile due to attacks on oil infrastructure and shipping, causing one of the largest supply disruptions in recent years. Although global oil flows are showing some recovery, the risk premium in the energy market stays elevated amid ongoing concerns about Middle East supply reductions and diplomatic uncertainty.
